TREND WATCH
A roundup of business developments spotted by other publications.
EDS Pushing Microcomputers: Electronic Data Systems, which earns an annual $5.5 billion maintaining massive mainframe and minicomputer systems, has shown it also knows how to think small. As powerful microcomputer networks take business away from larger systems, Dallas-based EDS is maneuvering to strengthen its microcomputer division by emphasizing service, training and support of its microcomputer software and systems. Although the division represents only 5% of its total sales, EDS is already among the country’s top 15 PC resellers. Dallas Morning News
Home Baby Care Seen as Growth Market: Healthdyne is one company prepared to ride the wave of home obstetrics-care growth. Revenue for the Georgia company’s perinatal services division grew to $15 million in 1989 from $1.1 million in 1987. Although the division did not yield a profit in 1989, the company is optimistic that it can turn that around with products such as its home uterine activity monitor. The monitor has not received full FDA approval, but the companys says new information on its effectiveness, due out in the next nine months, will help its cause. Atlanta Journal and Constitution
Cellular Phones Take Canada by Storm: If cellular telephones seem a particularly American indulgence, think again. Growth in Canada the past five years has astounded skeptics, with users increasing to 462,000 on June 1 of this year from 12,000 at the end of 1985. Robert Latham, president of Bell Cellular, says he underestimated capital construction budgets in 1989 by nearly $200 million. And George Fierheller, chairman of Rogers Cantel, reports that his expectation of 60,000 subscribers by 1989 missed the mark by 165,000. Fierheller calls cellular the “business opportunity of the century.” Toronto Globe and Mail
Food Price Hike Hits 9-Year High: Americans still pay less for food as a percentage of their income than any other nation, but droughts and fluctuations in global markets combined to push prices up 5.5% last year--the most in nine years. The situation is likely to worsen as the federal government considers dropping farm incentives and subsidies--which have historically kept food prices down. Milwaukee Journal
